Question:
This is two questions that are interconnected.
– What is the responsibility of the board to truthfully engage HOA?
– Does a board member have a responsibility to inform HOA of the actual facts?
The board president hired an unlicensed contractor for a major project without informing the HOA about the professional status of the contractor.
He gave home owners false information stating to the owners that the contractor was licensed. Any board member that objected to this action were intimidated in various ways and advised to not to speak against the board. They were also cautioned not to speak to HOA members without the board president’s approval.
Thanks for you input.
Answer:
Kindly check your governing documents to see if the HOA is required to hire licensed contractors. If so, it will be a breach of the governing documents. Meanwhile, if the president simply did not do the right background checks when he should have, it will be a breach of fiduciary duty. You can contact a lawyer for further guidance.
You may also review your governing documents regarding the procedure to remove the board member from their position as president or remove them from the board entirely. If your HOA is incorporated and your members have voting rights, you may remove the director by a majority vote from the board according to the Minnesota Nonprofit Corporation Act Section 317A.223(2)(3), as stated below:
“Removal by directors when there are members with voting rights. If there are members with voting rights, a director may be removed at any time, with or without cause, if:…(3) a majority of the remaining directors present affirmatively vote to remove the director.”
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
